EXPLANATORY STATEMENT
Issued by the Authority of the Treasurer and the Minister for Finance and Deregulation
Nation-building Funds Act 2008
Building Australia Fund (Subsequent Credit) Determination 2010 (No. 2)
Subsection 15(1) of the Nation-building Funds Act 2008 (the Act) provides that the Treasurer and the Minister for Finance and Deregulation, as the responsible Ministers, may, by writing, determine that a specified amount is to be credited to the Building Australia Fund Special Account (BAF Account) on a specified day or in specified instalments on specified days.
The purpose of this Building Australia Fund (Subsequent Credit) Determination 2010 (No. 2) is to specify, in accordance with paragraph 15(1)(a) of the Act, that $2,515,120.00 is to be credited to the BAF Account on 22 December 2010.
This amount relates to the unspent monies of the Commonwealth Government’s contribution towards pre‑construction works for the West Metro project which the New South Wales Government announced would not be proceeding. The Commonwealth Government provided a contribution of $91,000,000.00, originally sourced from the BAF Account, to the New South Wales Government for the pre‑construction works of the project in June 2009.
The New South Wales Government previously returned unspent monies of $80,140,000.00 million to the Commonwealth, which was transferred into the BAF Account on 17 May 2010 in accordance with the Building Australia Fund (Subsequent Credit) Determination 2010 that was signed on 5 May 2010. At that time, it was anticipated that further unspent monies will be returned following the completion of an audit on the project. This Determination will enable the residual of unspent monies of $2,515,120.00 to be returned to the BAF Account as a result of the completion of the audit by the New South Wales Auditor-General.
The Determination is deemed to be a legislative instrument for the purpose of the Legislative Instruments Act 2003. However, the Determination, as a ministerial direction, is not disallowable.
The Determination commences on the day it is registered on the Federal Register of Legislative Instruments.
Overview
The Nation-building Funds Act 2008 was enacted to facilitate the efficient allocation and management of funds for nation-building projects across Australia. This Act was introduced to address the need for a structured approach to funding significant infrastructure and development projects that contribute to the nation's long-term growth and prosperity. The Act empowers the Treasurer and the Minister for Finance and Deregulation to credit specified amounts to the Building Australia Fund Special Account, ensuring that funds are available for approved projects. The Building Australia Fund (Subsequent Credit) Determination 2010 (No. 2), issued under the authority of the Treasurer and the Minister for Finance and Deregulation, aims to credit an additional $2,515,120.00 to the Building Australia Fund Account on 22 December 2010. This amount represents the unspent portion of the Commonwealth Government's contribution to the pre-construction works of the West Metro project in New South Wales, which was subsequently abandoned by the state government. The policy objective is to ensure the proper accounting and availability of funds within the Building Australia Fund following the completion of relevant audits and the return of unutilised project contributions.
Scope and Application
The Building Australia Fund (Subsequent Credit) Determination 2010 (No. 2) applies to the crediting of a specified amount to the Building Australia Fund Special Account, as directed by the Treasurer and the Minister for Finance and Deregulation under the Nation-building Funds Act 2008. This Determination specifies that $2,515,120.00 is to be credited to the BAF Account on 22 December 2010, representing the unspent portion of a Commonwealth Government contribution towards pre-construction works for the West Metro project, which the New South Wales Government decided not to proceed with. This amount follows the earlier return of $80,140,000.00 to the BAF Account, with the current Determination finalising the process of returning unspent funds following the completion of an audit by the New South Wales Auditor-General. The Determination is applicable to the Commonwealth Government and the New South Wales Government and pertains specifically to the unspent funds of the West Metro project. The jurisdictional reach of this Determination is within the Commonwealth of Australia, under the authority granted by the Nation-building Funds Act 2008. The Determination is not subject to disallowance as it is a ministerial direction, and it commences on the day it is registered on the Federal Register of Legislative Instruments.
Key Provisions
The main operative sections of the Building Australia Fund (Subsequent Credit) Determination 2010 (No. 2) include subsection 15(1) of the Nation-building Funds Act 2008, which allows the Treasurer and the Minister for Finance and Deregulation to determine that a specified amount be credited to the Building Australia Fund Special Account (BAF Account) on a specified date or in specified instalments. This particular Determination specifies that $2,515,120.00 will be credited to the BAF Account on 22 December 2010. This amount is the residual unspent funds from the Commonwealth Government’s contribution towards pre-construction works for the West Metro project, which the New South Wales Government decided not to proceed with.
The Act imposes certain obligations and requirements on the parties involved. The Treasurer and the Minister for Finance and Deregulation must determine the specified amount to be credited to the BAF Account, and this must be done in writing. Additionally, the New South Wales Government is required to return any unspent monies from the Commonwealth’s contributions, as was done in this case with the initial return of $80,140,000.00 on 17 May 2010. The completion of an audit by the New South Wales Auditor-General is also a requirement, as the audit determines the final amount of unspent funds to be returned.
There are no specific offences, penalties, or civil/criminal consequences mentioned for breaches of this Determination. However, as a legislative instrument, failure to comply with the ministerial direction could potentially lead to legal ramifications, including administrative action by the relevant authorities. It is important to note that while the Determination is deemed a legislative instrument under the Legislative Instruments Act 2003, it is not disallowable. The Determination comes into effect on the day it is registered on the Federal Register of Legislative Instruments.